Sterling strengthened by services sector

The pound is in the black versus the US dollar after the UK announced stronger-than-expected services numbers for August.

GBP/USD is trading at $1.5615, up 0.3% on the day. Traders bought the pound on the back of the UK services purchasing managers index (PMI), which came in at 60.5 in August. This is the highest reading in over six years. It comes a day after the UK revealed a strong construction PMI report, and two days after the manufacturing PMI report exceeded analysts’ estimates. These figures are starting to paint a picture suggesting the British economy is gaining momentum.

The Beige Book, essentially a round-up of the US economy, is released at 7pm (London time) and may give an indication of the labour market's strength. The current rate of unemployment in the US is 7.4%, and the US Federal Reserve has stated it will taper the stimulus package once this figure drops. We will have to wait until Friday for the latest US unemployment data to be released, but tonight’s Beige Book may give us a clue as to what can be expected.

Spot FX GBP/USD chart

This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.

CFD’s zijn complexe instrumenten en brengen vanwege het hefboomeffect een hoog risico mee van snel oplopende verliezen. 79% van de retailbeleggers lijdt verlies op de handel in CFD’s met deze aanbieder.
Het is belangrijk dat u goed begrijpt hoe CFD's werken en dat u nagaat of u zich het hoge risico op verlies kunt permitteren.
CFD’s zijn complexe instrumenten en brengen vanwege het hefboomeffect een hoog risico mee van snel oplopende verliezen.